easyJet PLC (LSE:EZJ) has reported a reduced loss for the first half of its current year and said strong demand continued for summer booking is leading to an "expected acceleration in the delivery of its medium-term targets".
The budget airline posted results for the six months ending 31 March 2023 showing a headline loss before tax of £411mln, down from £545mln a year ago, and within the £405-425mln range given in its last trading update.
Revenue increased by 80% to £2.7bn while headline costs increased 52% to £3.1bn, including a 71% rise in fuel costs to £773mln. Net debt of £0.2bn was unchanged from its last update.
Bookings for the coming quarter are expected to be up 20% on the third quarter last year, with the booking window said to be returning "towards normalised levels", with 73% booked for the third quarter compared to 72% a year ago, and 36% booked for the fourth quarter compared to 33%.
For the full year, cost per seat, excluding fuel, is expected to be "broadly flat" on last year, while 75% of fuel costs are hedged for the second half at US$885/MT compared to a current spot price of US$720/MT.
The FTSE 100-listed firm said its package holiday arm is expected to make at least an £80mln pre-tax profit for the full year, and starting in the summer it will begin selling holidays in Switzerland, the second source market after the UK, with more countries planned.
"All of this progress should result in the acceleration in the delivery of our medium-term targets while we continue to also capture the opportunities ahead," said easyJet chief executive Johan Lundgren, adding that this includes a new UK base, in Birmingham.
Existing medium-term targets are for mid-teens underlying profit margins on an EBITDAR basis, low to mid-teen return on capital employed, at least £100mln from the Holidays arm, and for airline capacity to return to 105mln seats.